DTN Early Word Livestock Comments 10/08 08:02

DTN Early Word Livestock Comments 10/08 08:02 Follow-through Strength Anticipated Feeder cattle found strong buying interest as the day progressed. Nearby futures gained over $3.00 pushing October feeders to the highest level in a month. Live cattle followed along posting strong gains as well. Hogs were able to post minor gains but fought to hold those gains. Robin Schmahl DTN Contributing Analyst Cattle: Steady Futures: Higher Live Equiv: $213.11 -0.40* Hogs: Steady Futures: Higher Lean Equiv: $119.42 -0.60** * based on formula estimating live cattle equivalent of gross packer revenue. (The Live Cattle Equiv. Index has been updated to depict recent changes in live cattle weights and grading percentages.) ** based on formula estimating lean hog equivalent of gross packer revenue GENERAL COMMENTS: Feeder cattle led the complex higher Thursday with October closing at the highest level since Sept. 7. A strong stock market and cattle futures breaking through technical resistance increased the buying interest. Cash cattle trade was limited Thursday with prices in line with active trade on Wednesday. Not much change is expected on any business yet to be done Friday. Prices this week have been $124 in the South and $196 on a dressed basis in the North. Boxed beef prices provide some support as select cuts increased $1.53 but was offset by choice declining $1.32. However, the fact that there some days of higher cutouts after a period of relentless decline, might indicate a bottom might be forming. Export sales were neutral Thursday at 15,600 metric tons (mt), down 3% from last week, but up 5% from the four-week average. China was the largest buyer.